Equities Investors Gain N6.8trn as PFAs Boost Stock Holdings
Equity investors trading highs and lows in the Nigerian market gained about N6.8 trillion over the five trading sessions that ended on Friday as Pension Fund Administrators (PFAs) stepped up buying activities.
The local bourse expanded strongly week-on-week, extending its rally as investors’ sentiment strengthened amid heightened trading activity.
The Nigerian Exchange (NGX) All-Share Index (ASI) advanced by 6.16% week-on-week to settle at 182,313.08 points, reflecting sustained market confidence.
Stock market analysts at Cowry Asset Limited said the uptrend was largely supported by the recent upward review of pension fund equity investment limits by the National Pension Commission, which allows PFAs to allocate a higher proportion of assets to equities across sectors.
In tandem with the benchmark’s performance, market capitalisation increased by 6.16% to ₦117.03 trillion from ₦110.23 trillion in the prior week, representing a value gain of approximately ₦6.79 trillion.
Consequently, the year-to-date return strengthened to 17.76%, underscoring the market’s sustained bullish momentum. Market breadth remained robust at 2.93x, with 79 advancers outpacing 27 decliners, indicating broad-based buying interest.
Trading activity was equally strong, as total deals, traded volume, and traded value rose by 19.35%, 20.50%, and 50.04% week-on-week, respectively.
By week’s end, investors exchanged 4.65 billion shares valued at ₦193.53 billion across 287,158 deals, highlighting increased market participation and liquidity.
Sectoral performance was predominantly positive, in line with the broader market trend. The Oil and Gas index led gains, rising 11.40%, followed by the Commodities index (+8.42%) and the Industrial Goods index (+7.09%).
The Banking and Consumer Goods indices also appreciated by 5.84% and 2.95%, respectively, while the Insurance index posted a modest gain of 0.65%
On the stock-specific front, ZICHIS led the gainers’ chart with a 60.7% increase, followed by UNIONDICON (+60.2%), DAARCOMM (+55.3%), FTGINSURE (+50.0%), and JOHNHOLT (+45.2%), largely driven by strong accumulation interest.
Conversely, ABBEYBDS (-26.4%), SOVRENINS (17.2%), ETI (-13.3%), SKYAVN (-11.6%), and AUSTINLAZ (-11.1%) recorded the steepest losses, reflecting sustained profit-taking and selling pressure in these counters.
“In the near term, we expect the equities market to retain its positive momentum, supported by improved liquidity following the upward review of pension fund equity allocation limits by the National Pension Commission”, Cowry Asset Management Limited said.
Stock analysts said increased capacity for Pension Fund Administrators to channel funds into equities should continue to underpin demand, particularly in fundamentally strong counters.
The investment firm said, nonetheless, profit-taking may surface in the near term after the recent sharp rally, leading to mild pullbacks.
Market performance will depend on sustained institutional participation and sector rotation dynamics, according to Cowry Asset Management Limited. Overall, sentiment remains constructive, with liquidity-driven buying likely to keep the market on an upward path. GTCO Surpasses N4trn Market Cap, Trades at 52-Week High
